You will not work a day beyond your 55th birthday. And you plan to spend your retirement days sipping lemonade on Capri and stiffening your neck by watching two weeks of tennis at Wimbledon. You have no intention of being a stay-at-home retiree.
You might not have much choice, though.
Based on the most recent statistics, many households won't have what they need to maintain their current standard of living in retirement, let alone fund posh trips. According to a study from the Center for Retirement Research, the current gap between U.S. households' retirement savings and the amount they'll actually need in retirement is a yawning $6.6 trillion. (That figure encompasses the savings of both younger individuals as well as those who are closer to retirement.)
Determining whether your retirement nest egg will cover you or fall short is a complicated exercise, and unfortunately, the numbers won't always tell you what you want to hear. However, the advantage of checking up on when and how you might be able to retire is that it can help you determine whether changes are in order while there's still time to make them. You can work longer, save more, or spend less; you can also recalibrate your planned spending during retirement or make changes to your investments in an effort to optimize your returns.
What's Your Starting Point? >>